The company MicroStrategy has increased sales of corporate bonds, which were first announced yesterday, from $400 million to $500 million. The public company plans to use the earnings to buy Bitcoin on top of the 92,079 BTC it already holds.
According to a report from Bloomberg, citing unnamed sources, MicroStrategy increased sales after receiving $1.6 billion of bond orders from institutional investors looking to buy corporate debt in exchange for a 6.125% yield in annual interest.
The sale of MicroStrategy’s senior safe notes will allow the company, led by Bitcoin bull Michael Saylor, to buy more BTC once the price of the digital asset drops below $35,000. Last month Bitcoin hit a record price of $63,501.
While both numbers are well above the average price that MicroStrategy issues for its BTC, $24,450 per token, this quarter’s decline has forced the company yesterday to take an impairment loss of $284.5 million. So, as the Bitcoin price dropped at the end of May, the company’s official value also fell.
While investors appeared to be interested in bonds, MicroStrategy’s share price closed down 2% for the day. Existing bonds—$900 million in convertible notes sold in February for over $100, after buying Bitcoin dropped slightly, to $65.